NIPPON COKE & ENGINEERING COMPANY, LIMITED
3315・Prime Market・Oil & Coal Products
Business
Nippon Coke & Engineering Co., Ltd. traces its origins to the 1889 divestiture of the Miike Coal Mine and changed to its current company name in 2009; it is listed on the Prime Market of the Tokyo Stock Exchange. Its core business is the Coke Business, which manufactures coke at the Kitakyushu Plant and sells it to domestic and overseas steel companies. The company is organized into four segments: the Coke Business; the Fuel & Resource Recycling Business, which handles import sales of steam coal and petroleum coke as well as the Call Center Business; the General Engineering Business, centered on the manufacture and sale of powder and granule equipment; and the port transport and real estate businesses based at Miike Port. With Nippon Steel Corporation and Sumitomo Corporation as major shareholders, the company is positioned to support industrial infrastructure centered on the steel industry.
Business Model
In the core Coke Business, the company produces coke using its own manufacturing facilities at the Kitakyushu Plant and sells directly to steel companies, led by Nippon Steel (38.1% of net sales). In the Fuel & Resource Recycling Business, the company differentiates itself through integrated logistics for imported coal utilizing the privately owned port facilities at Miike Port. The General Engineering Business generates earnings through equipment sales and solution proposals based on its powder processing technology know-how. The company aims for a structure in which each business segment complements the others to secure stable earnings.
Company Strengths
In the Fuel & Resource Recycling Business, the company integrally utilizes the port facilities, warehouses, and call center of its own Miike Port (Omuta City, Fukuoka Prefecture) to provide unloading, stockpiling, and delivery on a consistent basis. It has a track record of exercising a complementary function even during disruptions to fuel distribution in neighboring areas caused by abnormal weather, giving it an infrastructure advantage that is difficult for competitors to replicate in the short term.
The General Engineering Business possesses powder processing technology accumulated over many years and a Powder Technology Center, and has introduced niche new products such as the "Tea Meister Mill" for matcha manufacturing processes. It maintained orders received of ¥7,735 million and an order backlog of ¥4,732 million in FY2026 (ending March 2026), and is also expanding into the battery, electronics, and resin fields.
In November 2025, the company decided to shut down two aging furnace groups, achieving a significant reduction in fixed costs such as repair expenses. The operating loss in the Coke Business for FY2026 (ending March 2026) improved substantially to ¥2,328 million from ¥12,357 million in the previous fiscal year. With the new 2A coke oven now in full operation, production volume expanded to 990,000 tons (up 73,000 tons year on year), also reducing the fixed cost burden per ton.
ENVALITH's Perspective
Performance Trend
Revenue peaked at ¥124,711 million in FY2022 (ended March 2022) and has declined for five consecutive periods, reaching ¥91,386 million in FY2026 (ending March 2026), down 7.7% year on year. The main causes were a decline in sales volume in the Fuel Business due to the fuel-switching trend, and softening of coke sales prices. Meanwhile, operating income/loss turned positive, moving from a loss of ¥8,562 million in the prior period to a profit of ¥607 million, as the effect of fixed-cost reductions from the transition to a two-furnace-group structure became evident. However, due to the recording of extraordinary losses of ¥7,057 million, including an impairment loss of ¥4,436 million, net loss for the period was ¥7,678 million, marking a net loss for the third consecutive period. For FY2027 (ending March 2027), the company forecasts revenue of ¥101,600 million, operating profit of ¥3,600 million, and net profit of ¥500 million, with the focus on whether net income/loss will turn positive.
Growth Strategy
Establishing stable production under the two-battery-group structure and rebuilding a multifaceted profit structure through strengthening of non-coke businesses
Implemented an optimized production structure by suspending the two aging battery groups and concentrating on the two new-generation battery groups. Effects of repair cost reduction and fixed cost reduction have been confirmed, and the operating loss of the Coke Business narrowed to ¥2,328 million in FY2026 (ending March 2026). Full-scale operation is expected to commence ahead of the original schedule in FY2027 (ending March 2027).
Strengthening integrated services covering unloading, stockpiling, and delivery utilizing the private port and Call Center Business, offsetting the decline in sales volume caused by the fuel conversion trend with value-added services. Maintaining stable earnings by differentiating through emergency response capability for events such as abnormal weather.
Introducing new products such as the "Tea Meister Mill" for matcha manufacturing processes, driven by demand for Japanese food, and expanding orders in niche markets by leveraging powder processing technology. Also promoting expansion into carbon-neutral related fields to reinforce its position as a stably profitable segment.
Plans to formulate and disclose a 3-year business plan going forward. By clearly presenting the earnings recovery trajectory of the Coke Business and the growth policy for non-coke businesses, the company aims to restore stakeholder confidence and stabilize its financial base.
Last updated: July 19, 2026